Government of Brazil has approved Boeing and Embraer’s strategic partnership.
The government’s approval comes after the two companies last month approved terms for the joint venture that will be made up of the commercial aircraft and services operations of Embraer.
Boeing will hold an 80% ownership stake in the new company, and Embraer will hold the remaining 20%.
The companies have also agreed to the terms of another joint venture to promote and develop new markets for the multi-mission medium airlift KC-390. Under the terms of this proposed partnership, Embraer will own a 51% stake in the joint venture, with Boeing owning the remaining 49%.
Once Embraer’s Board of Directors ratifies its prior approval, the two companies will execute definitive transaction documents.
The transaction is intended to close by the end of 2019.